Consider the two stocks, A and B, in the following table. Pt represents price per share...

 

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Consider the two stocks, A and B, in the following table. Pt represents price per share at date t, and Qt represents shares outstanding at date t. JA B PO 50 30 QO P1 100 40 200 35 Q1 Answer 100 200 If Stock A splits two-for-one right after date 1 (i.e., the price goes down to $20 and the number of shares doubles to 200), what would be the value of the divisor after the split? Assume the value of the divisor was 2 before the split. Enter your answer as a decimal, rounded to two decimal places. Your Answer: Consider the two stocks, A and B, in the following table. Pt represents price per share at date t, and Qt represents shares outstanding at date t. JA B PO 50 30 QO P1 100 40 200 35 Q1 Answer 100 200 If Stock A splits two-for-one right after date 1 (i.e., the price goes down to $20 and the number of shares doubles to 200), what would be the value of the divisor after the split? Assume the value of the divisor was 2 before the split. Enter your answer as a decimal, rounded to two decimal places. Your Answer:

Answer rating: 100% (QA)

To calculate the value of the divisor after the split we need to calculate th... View the full answer